The fundamental purpose of a valuation is to estimate the market value of the respective assets for various purposes such as the following:-
1. Initial Public Offerings / Corporate Exercises
These valuations are prepared for submission to the Securities Commission in relation to proposed listings of companies on Bursa Malaysia Berhad or for major corporate restructuring exercises of public listed companies which require Securities Commission’s approval. (refer Asset Valuation Guidelines by the Securities Commission and Listing Requirement by Bursa Malaysia Berhad).
2. Other Public Listed Company Exercises
These valuations are prepared for submission to the Bursa Malaysia Berhad, PLC shareholders’ approval or PLC announcements in relation to proposed PLC corporate exercises such as acquisitions or disposals of assets. (refer Asset Valuation Guidelines by the Securities Commission and Listing Requirement by Bursa Malaysia Berhad).
3. Accounting / Financial Reporting Standards (FRS)
These valuations are prepared for inclusion in financial statements as per the requirements of Financial Reporting Standards / International Financial Reporting Standards for inclusion in company’s balance sheets to provide the “fair value” of properties held by the company either for investment or own use purposes.
4. Compulsory Land Acquisitions
Section 3, Land Acquisition Act 1960 provides that the State Authority may acquire property:
-For any public purposes
-By any person or corporation for any purpose which in the opinion of the State Authority is beneficial to the economic development of Malaysia or any part thereof, or to the public generally or any class of the public or
-For the purpose of mining or for residential, agriculture, commercial, industrial or recreational purposes or any combination of such purpose.
5. Statutory Valuations:
- Stamp Duty Appeal
As provided for under First Schedule of Stamp Act 1949, this duty is based on the money value of the consideration or the market value of the property whichever is greater.
|STAMP DUTY SCALE|
|RM100,001 To RM500,000||2%|
|RM500,001 To RM 1,000,000||3%|
|RM 1,000,001 and above||4%|
- Rating Valuation
Any objection on the valuation of the property must be directed to the Stamp Duty Office (SDO) within 10 days of receiving the notice of payment, and a copy sent to JPPH
Rating or assessment is a local government tax imposed on holding (real property) within a local authority area for the services rendered by the Local Authority. The power to impose rates are provided for in the Local Government Act 1976;
Rates imposed by all Local Authorities are based on the Annual Value of the property with the exception of the state of Johor which adopts Improved Value.
Annual Value (except Johor): Estimated gross annual rent at which the holding might reasonably be expected to let from year to year the landlord paying the expenses of repair, insurance, maintenance or upkeep and all public rates and taxes.
Improved Value (Johor only): Price that an owner willing, and not obliged to sell might reasonably expect to obtain from a willing purchaser with whom he was bargaining, for sale and purchase of the holding.
6. Auction reserves and foreclosures
This valuation is prepared for the purpose of foreclosure proceedings. It is required for the purpose of assisting the relevant authorities to fix a Reserve Price for the sale of the property by Public Auction. The basis of valuation for purpose of sales by public auction shall be Market Value.
7. Fire Insurance
These valuations are prepared to ascertain the fire insurance value. The basis of valuation shall be the reinstatement cost new or such basis as identified in a fire insurance contract or policy
8. Rental Valuations
This is to ascertain the best monthly rent at which the subject property might reasonably be expected to be let in the open market at a particular time with the tenant undertaking to pay all costs for utilities and public services which result from the occupation and the landlord undertaking to bear the usual outgoings, such as assessment, quit rent, external structural repairs and other statutory taxes which are necessary to maintain the subject property in a fair and tenantable state.
9. Real Property Gain Tax (RPGT) assessment and appeals
RPGT is a tax levied by the Inland Revenue Board (IRB) on chargeable gains derived from the disposal of real property. This tax is provided for in the RPGT Tax Act 1976. The tax is levied on the gains made from the difference between the disposal price and acquisition price.
10. Intended Sale or Purchase
These valuations are prepared for the purpose of recommending the market value for the sale or purchase of a property. The basis of valuation shall be market value.
For claims on fair or adequate compensation in respect of properties compulsorily acquired by Relevant Authorities / Parties where negotiations and representations as expert witnesses at Court hearings may be required;
11. Bank Negara Malaysia (Central Bank)
This valuation is required by insurance companies for submission to the Director General of Insurance, Bank Negara Malaysia whenever they value or revalue their property assets.
12. Foreign Investment Committee
This valuation is prepared for submission to the Foreign Investment Committee for its approval in relation to property transactions.
13. Plant and Machinery
Our company also provides the valuation of plant and machinery for various purposes including receivership/insolvency, company accounting, capital issues etc.
Fixed assets for company report. Takeovers, mergers and acquisitions (M&A), joint-ventures.